May 2020 Q4 a&b

Stella-VD Company Limited, manufacturers of fruit juice for local consumption commenced business on 1/10/2017, with accounting year-end at 31 December. The company submitted its accounts for 2017 and was assessed accordingly. The company submitted its tax returns for 2018 year of assessment to the Ghana Revenue Authority on 30/04/2019. Below are the details:

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Required:
a) Compute the appropriate capital allowance for 2017 and 2018 year of assessment.   (8 marks)

b) Calculate the chargeable income of the company for assessment year 2018.  (12 marks)